Euro carry trade?

Henry C.K. Liu hliu at mindspring.com
Mon Jun 7 17:11:58 PDT 1999


There was much carry trade between the euro and the yen today.

The euro slipped even further against the dollar Monday June 7, 1999 as hopes receded for peace in Kosovo. The dollar fell against the yen.

The standoff with Yugoslav President Slobodan Milosevic over

implementing the Kosovo peace agreement reached last week caused further jitters over Europe's new currency, which has been

suffering since its debut in January.

Traders said the euro could fall even further against the dollar

unless some good news comes soon. Signs of weakness in major

European economies such as Germany have also darkened the outlook for the young currency.

The yen, meanwhile, gained some ground against the dollar on

reports that Japan's government may implement further fiscal

stimulus measures in hopes of reviving that country's moribund

economy. (AP)



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